Subway’s franchise association said it could not recommend the chain’s new melt sandwiches, arguing that they can hurt the company’s employees and its toasters.
The North American Association of Subway Franchisees, or NAASF, said in a recent letter to its members that it “cannot endorse” the product, citing a number of concerns, while arguing that the company has not adequately responded to them through its Franchise World Headquarters, or FWH.
“NAASF cannot endorse this promotion under these circumstances,” the association said in “franchisee warning notice” sent to its members, a copy of which was obtained by Restaurant Business. “We are hopeful that FWH will confront these issues immediately and allow us the opportunity to stand with them and endorse this promotion. In the meantime, weigh out the above concerns and stand strong with the decision you make as a franchisee investor.”
In a statement, the company said that it provides training materials to franchisees and tests all of its new products to make adjustments.
“The safety of our franchisees and their restaurant employees is a top priority for us,” the company said in an emailed statement. “In addition to providing extensive training materials, a standard protocol is to thoroughly test all new products and innovations and make operational and equipment adjustments as needed, ensuring that our franchisees and hard-working sandwich artists are able to safely and consistently execute a quality meal that guests expect.”
The primary issue is safety. The sandwiches feature melted cheese on a grilled roll and come in a bag. Operators said they had to place the sandwiches into the toaster by hand, which many say presents a safety hazard to employees.
The company did tell operators recently that they should use tongs or a paddle to place the sandwich in the toaster, as to alleviate those concerns.
But NAASF mentioned other concerns, including “toaster oven integrity” from the sandwiches burning—some operators say that the melts have damaged equipment as a result. The association also notes that the sandwiches are more operationally complex and present issues with customization.
The association said that it discusses issues with the company. “The majority of the significant issues to this point have either been ignored or met with ‘we are working on it’ as responses,” the warning notice says.
To be sure, the association also notes that it “fully embraces the attempt to add a new premium platform to our menu.” Operators had pushed back against the company’s attempts at value in the past, and a new premium platform could improve franchisee profits at a time when many of them are closing their doors.
But, the letter said, “we are incredibly disappointed in FWH leadership’s plan to move full steam ahead with this launch before these significant issues are resolved.”
The dispute is only the latest between Subway and its franchisees, which have been at odds in recent years over value and the company’s inspection of restaurants. Subway operators have closed some 5,000 locations since the chain peaked at 27,000 U.S. locations in 2015.